The Arizona state income tax rates are 2.59%, 3.34%, 4.17%, and 4.50%. Arizona state income tax brackets and rates vary based on taxable income, tax return status, and residency status.
In general, you must file an Arizona state income tax return if you are a resident, part of the year, or non-resident and your gross income is above these amounts:
Arizona gross income is equal to your federal gross income minus interest on government bonds, social security benefits, Railroad Retirement Act benefits, active military service, and pay for serving in the National Guard.
There are three types of residency status when it comes to Arizona state income tax. You determine what part of your income the state taxes.
»Find a Local Tax Advisor in Arizona for Free:
Generally, if you are a resident of Arizona for tax purposes, your primary residence is or you have been there for more than nine months during the tax year. Arizona residents submit Form 140, 140A, or 140EZ.
how Arizona determines residency status.
Generally, if you were non-resident for part of the tax year, you are an Arizona resident. This is often the case with people who moved to Arizona from another state.
If you are a resident for part of the year, you will typically pay all Arizona state income on any income you received during the portion of the tax year that you were a resident of Arizona, plus state income tax on income only from sources in Arizona while non-resident. Part-year residents submit Form 140-PY.
“Do you have to file in multiple states?
Nonresidents may still be required to pay Arizona state taxes on income received from Arizona sources. This means you may need to file an Arizona state income tax return even if you live in another state but have made money doing Arizona-related things, such as:
We weighed the pros and cons of some of the big players in this space.